Helping business owners, freelancers & other self-employed creatives succeed… and have fun doing it. It can be overwhelming at times, but there’s nothing like the privilege of working for yourself – making your own rules, owning your time, and trusting your instincts to make the right decisions. With short episodes that get straight to the point, this podcast is about the common issues we face in business, along with solutions that work for other creatives like you. Aardvark Girl is a producer, project manager & business specialist with 20+ years of experience managing companies & helping people in creative industries. She helps you get a handle on the business side of things so you can focus on your talent. Let's get to work!
Episodes
Monday Mar 29, 2021
Why Coach Has Become a Bad Word
Monday Mar 29, 2021
Monday Mar 29, 2021
I offer services that help business owners and other self-employed creatives in various ways. I've never liked using the word "coaching" for those services, but I'm especially moving away from it now after seeing what's been going on in that space lately. What should I call myself?
DM me @aardvarkgirl on any social platform and let me know!
Shout out to Arzo Yusuf of the Sexy Boss Babe podcast for inspiring this episode. Check out Episode 22 for her take on Predatory Coaching Programs. Join us Tuesday nights at 6pm Pacific time on Clubhouse for discussions based on her weekly podcast episodes!
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I have had issues with the word "coach" for years when it comes to that line of my business helping services. I've never really figured out what to call myself in that capacity. Consultant sounds too stuffy and corporate. Advisor sounds too hands-on. Mentor sounds too egotistical. Coach is the most commonly accepted, but it has a lot of negative connotations, especially lately. I have gone back and forth with what to call myself for years and have never settled on anything I love. In March of 2020 when I updated my website, I finally caved and decided to use Coach, because that’s the word people search for when looking for those services. I still didn’t love it, but I was willing to concede that it was the best choice.
But then, during the pandemic, it seems that everybody became a coach. A lot of people were looking for new ways to make money from home, and that seemed to be an easy transition. And with that surge of new coaches in the market came a slew of horrible practices - bad advice, sleazy marketing, and false promises. I've been hearing way too many horror stories about these predatory coaches and coaching groups taking advantage. They are targeting vulnerable women and pressuring them into spending money they don't have in order to "achieve their dreams." That’s not what coaching is about. The more I saw that, the more I was reminded of my issues with that word. I left it on my website, but I changed it back to Consultant on my social profiles because I did not want to be lumped in with those people.
I’m going to stop here and offer my typical disclaimer. My comments here are generalizing. Not all coaches are bad. There are plenty of great, ethical, honest ones out there who genuinely want to help others. I don’t take issue with people charging for their services or building a business by using their expertise to assist others. None of that is the problem.
What I’m talking about is going beyond acceptable sales and marketing techniques and tactics. It’s one thing to identify a need and offer a solution. It’s another to find someone’s triggering pain point and use it to manipulate them into working with you. It’s one thing to explain to someone how your background and knowledge qualifies you to help them with their specific goals. It’s another to lure them into a commitment by promising to help them earn 5 figures a month or 6 figures a year. No one can guarantee success, and any coaching program that makes such a claim is trying to trick you. Is it possible? Sure. Guaranteed? Unless they’re going to pay you themselves, not so much.
I’m sure many of you are familiar with some of these tactics. You join a group on Facebook and someone posts a question that’s something along the lines of, “What are you struggling with?” or “What’s holding you back?” or “What if you could let go of the fear that’s keeping you stuck?” I automatically cringe at these posts because I strongly dislike the assumption that all women in business are struggling, being held back, or afraid. Many of us are doing just fine, thank you. We are in those groups to share value and connect with others in a safe space.
But someone poses the question and maybe you answer because you want to engage. It’s why you’re there. Then the original poster offers you a freebie of some sort, either a document they created or a 5-day challenge they’re holding, or something like that to help you with your problem. They’ll give it to you, but you have to give your email address to get it. I’ll pass.
Or, in a similar scenario, you answer their post and then they DM you, with or without your permission, and offer the freebie there. Or they start a conversation and ask you more leading questions that ultimately lead to them trying to sell you their services, program, or whatever it is they’re pushing. It’s so transparent that they do not care about you. They see you as a potential buyer and are using you to hopefully make a sale.
It’s easy for me to say that’s transparent. My logical brain sees right through it. I question everything and have a healthy dose of skepticism whenever someone I don’t know appears out of nowhere asking questions about my process that are clearly trying to identify an issue I’m having. I see right through that. And I’m not saying I’m smarter or better than anyone else because of that. I always say my brain works differently than most. Some of these people are master manipulators and it’s easy to see how they’re able to succeed.
The problem isn’t just that initial meeting of sorts, though, it’s what happens afterward. Whether communication started in one of the situations I mentioned, during a discovery call, or any other way, the follow-up is usually when the worst happens.
A quick explanation in case it’s needed, most coaches offer discovery calls, which are usually 15-to-30-minute free consultations where you can ask each other questions, get to know each other, and see if you’re a good fit to work together. This is an excellent service, in my opinion, because you shouldn’t commit to working with someone at that level without having had a conversation first.
When it’s the traditional email marketing formula, it’s easy enough to brush off. They offer you a freebie, you give them your email address so you can get it, and then they start bombarding you with a series of emails, often once per day. They’ll tell you about them, give you some tips, share something deeply personal they’ve been through to which they hope you’ll relate, maybe share some testimonials, ask you if you’re serious about your goals, give you some advice, and then they’ll give you the opportunity to purchase their high-ticket item at a heavily discounted price if you sign up today. I don’t like this approach. I’ve talked about on this podcast before. But I also understand that it works and I can’t fault anyone for doing it just because it’s not my style. There’s nothing malicious about it, in most cases. It’s a common sales technique, nothing else. You can ignore them and unsubscribe.
The bad practice, however, is the bullying type behavior that can take place on those discovery calls or when you’re actually having a back-and-forth conversation. Sometimes these coaches will do whatever they can to push you into giving them your money. A lot of money, too. We’re talking about thousands, sometimes even tens of thousands of dollars, for these programs.
Some of them will keep pushing at those pain points they’ve identified. They’ll try to make you feel stupid for not joining the program. They’ll encourage you to do whatever you can to find the money, even putting it on a credit card and going into debt. They’ll tell you you’re making an investment in yourself and you can’t afford not to spend that money. They’ll make underhanded comments to belittle you and make you feel like you must not be serious about succeeding if you’re not willing to go broke to work with them. They’ll try to convince you that it’s a solid plan and you’ll make more money than you can imagine. Just look at all the things they’ve done, right?
But they don’t care about the reality of your struggles. They haven’t been in your shoes, whether they’ve experienced similar situations or not. They aren’t you. But they’ll do their best to make you think they know exactly what you need. And they’ll give you everything you’ve ever wanted, if you’re willing to pay the price.
Don’t pay the price.
It's so important to do your research before committing to a coaching program, or any service that requires a hefty investment. Ask specific questions about what they expect from you and what you should expect from them. How does their process work? What are the specific things included in the package? How much one on one time? How accessible will they be via email, phone, or other apps in between sessions? Will they help you develop a strategy with actionable steps to take? Will they work with you more on mindset and changing habits? How do they align with your specific goals and values? Don’t be shy about asking direct questions to make sure you feel like you’ll get what you need from working with them.
Don’t rely on testimonials on a website. Speak to their references. If they don’t have any, or aren’t willing to share their info, that’s a huge red flag. Some other red flags? Guaranteeing income or specific results. Pushing you to spend money you don’t have. Pressuring you into paying them during the discovery call, or in any way not allowing you to have time to think about your decision first. Talking down to you. Any kind of bullying behavior is not okay. Trust your instincts. If you get a bad feeling about someone, do not work with them. If something sounds too good to be true, it probably is. Stay away. Protect yourself from these predators who call themselves coaches.
I don’t think I fit into the coaching mold. I break the typical rules. I encourage people to get to know me before they decide to work with me. That’s why this podcast is here, so people can get a sense of who I am without me even knowing they’re listening. I talk to them to make sure they’re in a place where they can take the right action before I take their money. I do offer monthly and longer-term packages because often real results do come from commitment, but I also offer hourly sessions, which many advise against. I think those are just as important, though. It’s another way for someone to get to know me. I’m surely not going to marry someone after we’ve had one conversation while standing in line at the grocery store. So why would I expect someone to make a huge commitment to me after one short call?
Maybe they’re not ready to spend thousands of dollars. There’s nothing wrong with that. Maybe they just have a few questions, or one situation that needs a little guidance. It doesn’t always require several weeks of working together to help. That’s why I’m here, to help. Not to entrap someone for months at a time. I don’t encourage dependency on me. If someone wants to keep working with me, that’s great, but I also empower people to do great work on their own. All of this goes against typical coaching practices. And I am perfectly okay with that.
I’ve asked it before, but I’m asking for your input again. What word do you think is best for me to describe these services? Should I stick with Business Coaching because that’s the most search friendly term? Is Business Consulting better? Business Advising? Business Mentorship? Business Strategist? What am I? Please help me figure this out! Call me names! Send me a DM or tag me on social with your suggestions – I’m @aardvarkgirl on all platforms. And if you’re on Clubhouse, join Arzo and I, along with some other wonderful moderators, on Tuesday nights at 6pm Pacific. Thanks for listening!
Monday Mar 22, 2021
Crystal Thurman: Never Have to Say "What If?"
Monday Mar 22, 2021
Monday Mar 22, 2021
From a stay-at-home mom to a model to forming her own casting agency, Cast Vegas, Crystal Thurman is proof that it is possible to have it all.
In this episode, she talks about turning her passion into a dream career and why it doesn't feel like work. She credits drive, faith and fear for motivating her throughout the journey, along with working hard and keeping herself accountable to her vision.
We also discuss some positive outcomes of the pandemic, such as finding her love for Lululemon clothing, giving herself more down time, and not stressing out so much to get everything done right away.
Her biggest piece of advice? If you want to do something, jump right in and do it. The worst thing would be to look back and wonder "what if?" Believe in yourself and you might find yourself becoming an extraordinary success!
Connect with Crystal @crystal_thurman & @castvegas
Connect with me @aardvarkgirl on all platforms: https://pods.link/aardvarkgirl
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00:39 You definitely don't have to choose between being a mom and having a career.
01:53 I love the model and talent industry, and I love helping people. And I thought, where can I put this all together and make it like my dream job?
05:02 There is extraordinary talent in Las Vegas. I definitely tried to figure out our demographics, our clients, add a little bit more family and customer service to it, where I felt like that was lacking here.
08:30 When you have drive and passion behind your dream, there is absolutely nothing you can’t accomplish. If you love something, just jump in and do it.
12:03 If you're not uncomfortable in your own skin almost every day, then you're not pushing yourself. Drive, faith and fear might be the biggest components of everything. But you have to have the drive. And if you really want it, you can obtain it.
15:25 I kept my vision board in my office, and I would sit in my office and I would look at it. And on Friday, I would give myself a checkpoint. So at the end of the week, I would say, “What did I do to move towards one of those things, or two of those things, or three of those things on my vision board? I accomplished probably 80% of my vision board in four or five years, so there's just 20% left, but I still check myself every week how I’m getting there.
17:00 Don't think we didn't do the work. There were business coaches, there were classes I took. Everywhere I went, I asked questions like, “What are you lacking? What could be better? What can I do more?”
19:41 I kind of jumped in with that blind faith, knowing that it would come to fruition. I just had to put in the work.
Do you ever want to look back and say, “What if?” So what is the worst thing? You don't succeed at it? But you tried it. You gave it everything you had, and it didn't quite work? Or you gave it everything you had and now you're this extraordinary success?
25:38 There's actually more power in figuring out what doesn't work. If you know what doesn't work, and you have the tools to make that one thing work, you will rise to the top very quickly.
27:11 Before the pandemic hit, I was spinning 150 miles an hour every single day, all day. COVID, ironically enough, gave me a new love for my job. I'm much more balanced in my life than I was before.
33:03 When you start taking care of yourself first and not running yourself so beyond ragged, you're just as productive. I definitely find myself in a much calmer, happier place after this whole pandemic.
37:08 I know I keep on coming back to the positives of the pandemic. It gave everyone a lot of time to kind of really reevaluate their world and where they truly want to be and what's really important, like what really is important.
40:36 I love talent, I love my friends, I love my job. I seriously love my company so much. But I think realizing that we can do things via Zoom, FaceTime, that kind of stuff, has freed up a lot of my time. I've also hired someone on full-time now who now can do the same thing that I was doing, and so it's made the company actually more efficient, giving me more free time to reach out.
42:30 If you can look back and say there's no what-ifs and you're uncomfortable, then that's where your dream and your gift will come in. Because that's how you know you're growing. And that's how you know you're moving forward. And there is nothing better than being your own owner and having your company at your heart and doing what you love. There's no greater gift.
Monday Mar 15, 2021
Business Ghosting: People Deserve Better
Monday Mar 15, 2021
Monday Mar 15, 2021
Ghosting has moved its way into business, and it's not okay. If you don't want to work with someone anymore, don't be a coward. Have the decency to let them know.
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Connect with me through your favorite platform: https://pods.link/aardvarkgirl
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I think we’re all familiar with the concept of “ghosting” as it applies to the dating world. The gist of it is that two people are having some kind of relationship and then one of them disappears – no more communication, no explanation of what went wrong – just gone. The person on the receiving end typically feels confused, hurt, betrayed, and a whole slew of other emotions. Sure, breakups can be difficult and uncomfortable, but ghosting draws out the whole process because one person doesn’t know the relationship is over.
I personally have no respect for ghosters. I think it’s selfish, cowardly and cruel. I’ve heard some people justify it by saying it spares everyone the awkwardness of a nonmutual breakup. But just stopping communication with no warning robs the other person of the closure they need. It’s become a huge downfall with technology and how people communicate, or don’t, with each other. Somehow it’s become common, sometimes even acceptable, to ignore people. I don’t think I will ever agree with it. I think we need to remember that, even though we’re mostly interacting via typed messages on various platforms, that doesn’t negate the need for compassion, empathy, and general human decency.
Not surprisingly, ghosting has spread from dating to all kinds of relationships, including professional ones. I hear from people, or see posts in business groups, almost daily now with a new story about a client who ghosted them in the middle of a project. It seems to be happening all the time, in different ways.
Sometimes it’s in the initial discussion before a contract is signed, which can be frustrating because, as many of you know, it takes a decent amount of time to prepare proposals and quotes. We often spend time talking to the client to get the information so we can build the budget for a project, agree upon terms, and all that fun stuff in between – work that’s essentially done for free before the job is even awarded.
Other times work starts and then the client disappears. You have questions that haven’t been answered and you’re left in limbo wondering if you should keep reaching out or call it a day and abandon the project on your end as well.
The worst stories I hear are when jobs are completed and the client goes into invisible mode before making the final payment. Those are the times when, all too often a hard lesson is learned about the importance of having detailed contracts signed before work starts, collecting deposits, and not delivering final materials before the account is paid in full. It’s a mistake that usually only gets made once, but it can have a huge affect on a person – mentally and financially.
I have only been business ghosted once. It was a few years ago and a new client, but someone I’d known for many years, hired me to get a year’s worth of bookkeeping in order so he could do his taxes for his new company. There was a rush, obviously, so I agreed to a one-month package where I would set up the system and get everything entered myself and then train his team how to maintain it moving forward. Along with the contract, I sent the schedule with all of the deadlines they would need to maintain in order to get it all done in the allotted time. There was also a clause that if the work extended past the month, or if they wanted to keep me on retainer to manage it myself, it would be x amount per month. Standard stuff. I gave them two payment options – pay the full amount with 50% due up front and 50% due before the final training, or 100% due up front at a discounted price. They paid up front, so we were good to go.
They missed their deadlines, of course, but we were still able to make progress. I got everything caught up, 1099s mailed out, and everything else ready for their accountant. There were only a few things left, including my video training for how to use the new system, and it crossed over into that next month so I sent the invoice. I never heard from them again. They didn’t remove my login or do anything to indicate there was a problem. They just ghosted.
It wasn’t really an issue on my end – they didn’t pay my invoice so I didn’t do any more work. The silliest part about it is that because they didn’t respond, they never even got the training session they already paid for. That video would’ve been an important reference tool so anyone on that team could easily do everything properly. It would have given them step by step instructions for how to maintain the system I set up, so they wouldn’t have to pay me, or anyone else, to keep their books updated. The whole point of that was to help make sure they didn’t end up in that kind of situation again.
That experience with ghosting makes no sense because the only one who really lost out was the client, the ghoster. It wouldn’t have been an uncomfortable conversation if they didn’t want to keep working with me, because that was never the point. I intentionally worked out a deal with them that didn’t include any obligation beyond the original one-month term. It was a new busines with a small team, and they had someone there who was capable of doing it. I have never been that consultant who only helps enough to make sure I’m always needed for something else. I’m there to help at whatever capacity is needed, and sometimes they don’t need another monthly bill. They just need a little help to get things in order and then they can take it from there. That’s always fine with me.
My story is nothing but an odd anecdote. But I’ve heard from so many others who have had much more impactful ghosting situations. Discovery calls that end with “yes, I’m excited. I’ll be in touch soon!” And then nothing. A series of meetings, all moving towards a contract, but then crickets when it’s time to commit. Or a ton of back-and-forth emails working through all of the details to put together a budget, schedule, and everything else that’s needed, just to submit and never hear from them again.
And it’s not just clients who do it, either. One of my clients hired a vendor to manage some important elements of her business. After months of progress, this person went MIA, leaving the project unfinished, several months wasted, and my client having to start over from square one with someone new. It’s not okay. Wasting other people’s time and money is never okay.
And it’s not to say you have to keep a relationship with everyone you talk to. But if they’ve put their time into doing something for you, have the decency to say thanks but no thanks. It’ll take you less than a minute to send a simple email. I don’t care how busy you are, it doesn’t validate being inconsiderate to other human beings.
It’s one thing if you reach out to someone to offer services – a cold call or a general inquiry. While I still think it’s polite to respond, I get that the volume of these types of emails can overwhelm an inbox and sometimes we don’t get around to it. But when time and energy has already been put into conversations, meetings, and verbal or written commitments, let them know if you’re not going to move forward after all.
It’s another thing if you’ve only had a couple conversations with someone and decide it’s not for you. I still think you owe them a quick email to say hey, thanks for your time, but I’m going to go in a different direction for now. Or something simple. You don’t have to give a long explanation. It’s more of a courtesy to manage their expectations so they can move on to something else. And then they won’t keep emailing you to find out what’s going on. Win win.
Last summer, when I was finding locations for filming, I talked to a lot of people. I got quotes, photos, and details to share with my team. After a decision was made, I emailed every single one of them to let them know we wouldn’t be needing the space. That way they weren’t holding out hope that they’d have the job. They weren’t depending on the dates if something else came up. There are a whole number of reasons why I believe that kind of communication is the right thing to do. I don’t like delivering bad news, but it’s better than leaving someone hanging.
The thing is, unfortunately, it seems like ghosting is common practice now. It’s probably going to happen to you at some point if it hasn’t already. So we, as business owners, need to protect ourselves and do the best we can to make sure ghosters don’t put us in bad situations.
First, don’t take it personally when it happens. You don’t know what’s going on in their lives or why they decided not to continue. You can speculate all you want, but you’re never going to get an answer. So why not just assume it wasn’t you, it was them. Try not to think it’s a reflection on your work. You’ll drive yourself crazy trying to figure out something you can never figure out.
Next, until you have a signed contract, be mindful of how much of yourself you’re putting into getting the work. We all want to give our full effort to getting new clients. We get excited about the prospect and come up with all these ideas and want to show people how awesome it would be to work with us. But it’s important to learn how to create an efficient proposal so you don’t waste precious hours on a job you’re not going to get. Templates are your friend. Starting with a ballpark budget range can help eliminate those potential clients who are never going to pay what you’re worth. Meaning before you go through all the line items and numbers to estimate a project, use your experience to say something like this would typically cost between x and y, depending on the specifics. If that fits in with your budget, let’s discuss further. Then if you never hear back, you haven’t wasted your time.
Finally, make sure your contract covers everything. The entire scope of work, in detail. Specific deliverables. Include dates and deadlines, both for you and the client, along with a clause that lays out what happens if they don’t get you what you need in time. It doesn’t mean you’re going to sit around waiting for them and when they finally get around to it, you’ll jump on it right away. Nope. If they do get it to you, and it’s beyond the time you had allotted for them per the contract, you’ll have to decide if you want to schedule a new time or if they’ve forfeited whatever they’ve paid. Set the payment schedule in clear terms. Collect a deposit before you start work. Explain that you own the work until it’s paid for in full. You won’t deliver final materials or files until the final payment is received (and cleared, if they pay by check). Outline the cancellation policy so they know that if they bail in the middle of a project, you’re not going to refund them. Your contract is what protects you from these unfortunate new business antics, so you want it to be as clear and detailed as possible . It’s like your own personal ghostbuster.
If you’ve ghosted someone, please let me know why. I really want to know the reasoning behind the decision. Are you uncomfortable with letting someone down, so you avoid the situation altogether? In that case, you know you’re letting them down but you don’t have to see or hear the reaction so you’re okay with it? Do you think they’ll try to keep pushing or convincing you to work with them, so you’d rather not say anything at all? Or are you just telling them you want to move forward because it feels easier in the moment than saying no, I’m not interested at this time? Or do you think hey, it’s just business, not my problem? Or something else? Please enlighten to me. I always want to understand multiple points of view of a situation, but I’ve yet to hear the ghoster’s perspective.
I really hope ghosting isn’t something we should all just accept at this point. Part of being an adult is being able to have difficult conversations with people in a calm and respectful manner. All relationships deserve consideration and decency, whether they’re with romantic partners, friends, business partners, clients, vendors, or anyone else. It’s okay if you don’t want to work with someone. It doesn’t make you a bad person and even though they might be disappointed, it’s better to be honest and direct with them so you can both move on. Don’t be selfish. Don’t be a coward. And don’t be cruel. People deserve better.
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I'd love to hear your thoughts!
If you have questions, comments, or suggestions for topics, email info@aardvarkgirl.com or find me on social @aardvarkgirl. If you want to work with me, that’s where you’ll find me, too.
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Monday Mar 08, 2021
Money Tip: Saving is Buying Peace of Mind
Monday Mar 08, 2021
Monday Mar 08, 2021
It’s time for another Money Tip! Because we all want more money but don’t always know how to get it. And when we get it, it’s tempting to use it to buy stuff. That’s kind of how the economy works, right? But, let’s face it, there are a lot of people out there who wouldn’t consider themselves to be “good with money.” Is that you? Let’s talk about that.
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Connect with me through your favorite platform: https://pods.link/aardvarkgirl
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I want to start with a disclaimer. Nothing I say in this episode is meant as criticism. It’s not meant as judgment. I say it all from a place of compassion. I do understand that money is a bit of a touchy subject most of the time, but especially now. We are just about one year into the COVID-19 pandemic, which created and amplified financial issues for people around the world. People were suddenly without jobs, without income, relying on unemployment systems that were overwhelmed by demand, and so much more. It’s still fresh at the time of this recording, so I get that it might be triggering. But my intention is to help so we can all be better prepared in the future. We can’t do anything about what has already happened, but we can make changes in our habits that will help us in the present moment, and hopefully the future.
Okay, now that that’s out of the way, I’m going to get down to business, starting with a blunt statement. If you think you can’t afford to save, you need to address your budget. Saving should NOT be optional. It shouldn’t be where your money goes if you have any left after all of your other expenses. It should be a top priority in your budget.
I’ve heard every excuse in the world, and I don’t accept any of them. I get it. Life is expensive. You have needs. There are things you want. Things that will make your life easier, or your business run more smoothly. Emergencies come up all the time. The kids need something for school. Your car needs an expensive tune up. The water heater needs to be replaced. Your pet really needs that fancy extra plush bed with the built-in pillow she can crawl into. Yes, these things are often urgent, but the real emergency is letting yourself get to a place where you don’t have a safety net. A place where one unexpected expense throws you into a debt spiral.
No one was expecting a pandemic to come along and force everyone to stay home. We didn’t expect our businesses to be put on hold for an indefinite amount of time. Some were able to open quickly. Some still aren’t back. Most have nowhere near the volume of sales they did before, and a lot of adjustments have been made. It was terrible for many, so again, nothing I say here is meant to throw blame or in any way discredit the valid hardships anyone faced. But it was concerning to me how many people went into panic mode because they didn’t have any money saved. No emergency plan. No rainy day fund. Just relying on the check from the last job to survive.
I’m not going to harp on everything that happened, how many systems failed the general public, or how much stress everyone was under trying to figure out how to stay afloat when they couldn’t work. We all know what happened a year ago and where things are at now. I’m more interested in what we can do moving forward.
We’ve been talking about adapting a lot on this podcast because it’s so relevant to what’s been going on. Adapting is great, but it’s a reaction. The best thing you can do for yourself financially is to be proactive. Build that safety net so you know you will be okay if something like this happens again.
I know there are other factors in play here, like how many people aren’t earning a fair wage and they are working hard to support themselves and their families but are still barely getting by. It’s an unfortunate epidemic and I wish I had a solution for that. The sad truth is that sometimes we just have to make sacrifices.
For some background, I didn’t grow up with money. My mom opted to be a stay-home mom while my brother and I were young. I will always be grateful to her for that. But when my parents got divorced, she was thrown into a situation where she had to get a job but had no work experience. She ultimately had to start from the beginning when she was in her 30s. It wasn’t easy, but she made it work.
We always had what we needed, and it taught me some valuable lessons about work, independence, and figuring things out. Part of the reason I decided to start working so young was because I didn’t want to end up in that situation. I learned how to be frugal early on because I wanted to make sure I could always take care of myself. My grandpa often talked about the importance of having a rainy-day fund. My dad encouraged me to save 10% of everything I made. These are lessons I still follow today.
Again, saving shouldn’t be an optional “expense.” Yes, I’ve heard many people call it an expense, but to me, it’s more of an investment. In yourself, in your family if you have one, in your business, in your peace of mind. You don’t ever want to find yourself in a situation where one unexpected expense means you can’t pay your bills that month. If 2020 wasn’t eye opening about how important that is, I don’t know what would be.
The best place to start is by determining your budget. If you want more specifics about budgeting, please go back to episode 26: Budget isn’t a Bad Word. I go more in depth about that there and don’t want to be too repetitive. But you’re with me here now, so I’ll briefly review the 3 types of saving that need to be included in your budget – taxes, saving, & investments.
Taxes are tricky because you have to put money aside, but it’s not actually your money. So it’s not really saving, but it’s important to keep that money separate so you don’t accidentally spend it. The IRS isn’t going to care what happened in your personal life – they will get that money and you want to stay on their good side. The amount to set aside for taxes will depend on where you live. In the US you have federal taxes and, in some cases, state taxes. If you’re in another country, it might be different, too. No matter where you are, it’s best to save a percentage of your income to account for those taxes, because taxes are a percentage of your income. It’s pretty straightforward.
Saving is that emergency or rainy-day fund that you want to have available in case something comes up. You’ll see different rules of thumb out there, usually suggesting that you have somewhere between 3-6 months’ salary in your savings account. I would say 6 months should be the minimum, ideally working up to a year. It might sound daunting at first, but imagine how peaceful it would be knowing that you could have that much time to figure out what to do if you lost your job, your clients, or the ability to do your work. I also advise sticking with the percentage here, versus a flat amount each month, so you are able to save more in your busier months and have more flexibility in the slower ones. I think 10% is the minimum, but ideally you should consider more so you can get to your goals faster.
Investment and retirement plans are crucial when you are self-employed. We don’t have pensions and company-matched 401ks. We have to provide for our own futures. And the sooner you start, the more comfortable you will be. There’s a thing called compound interest that is your friend. Let your money make more money for you so when you’re ready to retire, it’s a comfortable option for you.
So when you’re budgeting, make sure these 3 categories are included. That way you’re looking at the bigger picture and being practical when figuring out how much you actually need to make.
My first year in business, I had no idea what my income would be. I didn’t even have a guess. So to be cautious, I saved a minimum of 50% of all of my income. Every time I received a payment from a client, I instantly transferred half of it into my business savings account. I figured it was approximately 35% for taxes & 15% for saving and investments. I knew my taxes wouldn’t be that high, but I wanted to be covered to be safe.
I made those transfers without fail. If at any point I didn’t have enough to cover my expenses, it wouldn’t mean I could pull it out of savings. It would mean I would need to reduce my expenses. I treated that savings account as one-way only. Money could be put in, but never taken out. No exceptions.
After my first year, I updated my saving system. I elected to start filing taxes for my LLC as an S Corp, so that changed the amount I needed to plan for taxes. And by that point, my savings account was at the level I wanted to maintain. I like to keep a minimum of one year’s income available in my accounts. Some people are fine with 3 months but I don’t feel like that’s enough. I recently transferred a chunk of my savings account to one with a higher interest rate, so it’s good to shop around sometimes to see what’s out there.
With my minimum savings met, I then focus more on investments. Every year, in the beginning of January, I make the maximum contribution to my IRA. That way, it has the whole year to earn interest. I also have a SEP IRA, which allows my business to contribute up to 25% of my payroll salary. I contribute to that quarterly, but then in December I will give myself a bonus depending on how things are looking, which allows me to then contribute more to max out that SEP IRA limit. There are also solo 401k options that can allow even higher contributions. You might prefer to invest directly in the stock market – if you understand how to do that, go for it! There are so many options out there. You just have to figure out which ones are best for your specific situation.
I’m telling you all of this for the sake of transparency. I don’t give advice unless I’ve been through a situation myself and feel like I can help by sharing what I’ve learned.
A rule I’ve always lived with is “if I can’t afford it, I don’t need it.” Debt isn’t worth it to me. The only exceptions I’ve ever made have been for a house or a car. I have taken out low interest loans for those things, but I make extra payments to make sure they’re paid off early. I do use credit cards because I like the rewards. I always pay the balance in full every month.
It’s important to be honest with yourself about what you can afford. If you can’t seem to make the numbers work, you have two options. Make more or spend less. There are short-term solutions for cutting costs – things like meal prepping at home instead of eating out, canceling some of your monthly subscriptions, or making some DIY products instead of buying them. Sometimes you can save money by making a few calls – ask your phone, cable, and insurance companies if there are any discounts or bundles available.
Keep your bookkeeping in order and talk to your CPA to make sure you’re not missing out on important deductions. Depending on how much you make, it might be beneficial to form an S Corp, or elect to have your LLC file as an S Corp like I do, so you aren’t paying that self-employment tax (again, that’s for those of you in the US – I know it’s different in other countries).
Talk to your financial advisor if you have one. If you have an investment account like an IRA, your bank might have people available to offer some guidance. I know it can be uncomfortable to talk about money sometimes, but there are professionals available who want to help.
Ideally, find ways to make more income. Are you dedicating enough of your time to getting more work? It’s another situation where you need to be honest with yourself. If you’re in a pinch, do you have anything you can sell? That might not help you in a long-term sense, but it might buy you a little more time. The answers are different for everyone, but do your best to brainstorm ideas and come up with your solutions. When it comes to money, it’s crucial to make it a priority. You have to hold yourself accountable if you’re serious about building your financial freedom.
The idea of budgeting, or saving, isn’t to give up everything you love. But if you are thoughtful with your money, it will help you do more without worrying so much about it. Yes, it might mean some sacrifices in the beginning, but the long-term rewards are worth it. It’s that idea of deferred gratification – you give something up now so you can have something even better in the future.
If you’re a business owner, chances are you are already busy and might sometimes feel overwhelmed with everything you need to do. If you’re feeling extra stress on top of that because you’re worried about money, you’re not alone. I think almost everyone has felt at one point or another that they don’t have enough time and/or money. And you might feel like it’s out of your control, but it isn’t. Look over your numbers. Make a plan. Invest in yourself. Remember that the money you save now is buying your peace of mind for the future.
Monday Mar 01, 2021
Jarrod Oram: Experience, Understanding, Empathy & Humility
Monday Mar 01, 2021
Monday Mar 01, 2021
Jarrod Oram is a creative with many talents and doesn't like to be restricted by any specific label. In this episode, we're talking about the importance of surrender, self-care, authenticity, enjoying the journey, and saying yes to opportunities along the way.
Connect with Jarrod @jarrodoram
Connect with me on your favorite platform: https://pods.link/aardvarkgirl
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00:42 I think, just in society as a whole, labels are safe because they give us identification and they can provide us with a sense of who we are. But all a label is is just a title that you've given yourself, and it's easy to hide the shield behind it.
02:10 We place these artificial terms around what we're “supposed to” be doing, and that kind of limits us. And it keeps us kind of in this tunnel vision mode of staying this path. And I think one of the biggest things that's happened for me over the last few years has been a lot of self-growth, and a lot of taking those blinders off and really kind of surrendering to this world.
04:55 Words like “supposed to,” “I should,” “I can't,” those are absolutes and we just don't realize how damaging they are to put those on ourselves. Because what happens if you don't do that? Then it almost becomes like this shame cycle. And in a professional world, in a personal world, you start layering those on top of yourself and it gets to a place where you're just kicking your own butt time and time and time again.
06:44 It was this odd, beautiful eye opener in the fact that I tended to attract very, very toxic bosses. Not only attracting those, but then staying in those relationships. And they did me the best favor on the planet in letting me go the day before Thanksgiving. I was driving home with all my stuff in my car and I was like, blank canvas. This is happening for my greatest good.
10:51 This is a total Jarrod thing - let's get in the car for three hours go see a Sturgill Simpson show. And I remember during that show, just feeling that warmth inside of doing the things for me that offer that inner joy that nothing on the outside can create. And I just think of that time and time again, because that was the thing. I was like, oh, got it. This makes sense.
17:04 Authenticity is, am I bringing my true inner self? My true inner self curses a lot. It just does. My true inner self buys too many shoes. It just does. You know, I mean, and those aren’t things that define me at all, and it becomes parts of my traits. And I don't bring the work side to Amanda or my boss, I don't bring the professional side to that. I bring Jarrod. Because if I can be my true place anywhere I go, I’m staying true to myself, I'm staying true to people, and that ends up showing. It ends up showing in my photography. It ends up showing in my content strategy.
23:01 Trying to walk people through their struggles when you're in the middle of them, it can feel so defeating and so relentless, and so never ending. But don't you look back on those now and you're like, I am so grateful for those? Because change doesn't happen when you're skipping on a sunshine with Jesus. It just doesn't happen then. And change sucks. And it is really gnarly when you're in the middle of it, because you don't see the outcome of it. And it shapes you to a place to feel, from a level of awareness, to spot those things and to understand your self-worth. And then to be able to take chances like this to really step in unknowns.
26:44 People are dying for vulnerability and authenticity. And yet, it requires a lot of courage, and a lot of bravery, and a lot of getting dropped on your butt and getting back up and dusting it off lovingly and kindly to ourselves and saying, “You know what? I choose to do it again. Even though I just got my butt kicked with it, I'm going to do it again.” Why? Because I'm going to keep showing up. I want to choose courage over comfort today, because that's where the change is gonna happen.
29:17 Things start with dreams. And then it starts with goals. And then what can I learn to create a plan with it? And then I have to act. I have to take a series of steps of actions, and sometimes they're just small actions. The next step, just doing the next one and then seeing what shows up.
33:09 What I do is I connect people. What I do is I inspire people. I have a good sense of design and direction, and the messaging that comes behind it. People hire me because they want a story told. Yes, everyone talks about stories, but I come in to really have people understand that it's not about just checking the boxes of what you do. There are 200 other companies that do what you do. Let's really look at your why.
39:08 If I can bring experience, understanding, and empathy to people, and humility. I bring those things to the table time and time again.
42:39 Relationships are meant to be vulnerable, because in that vulnerability, there's trust. And where there's trust, there's intimacy. And when Intimacy happens, then that's the thing that people can really grow with. And that happens in the professional side as well. That’s what really can happen in the coach/mentor side, especially when people start seeing results from it.
50:14 Trusting your gut and trusting yourself, and that who you are today, what you do today, does not define you. You are your own entity. There is not another entity, there is not another brand, like you today. There's not another one on this planet. You are your own unique selling proposition. And you can pivot, you can shift, you can do any other stupid 2020 words that we've overused, but there's that capacity inside you. And you're worth it, and you have it and you can do it. It gets back to that belief of what are you doing to take care of yourself in order to then take that to the world? Because I cannot give away what I don't possess inside.